SpiceJet to consider fare hike
Budget carrier SpiceJet Ltd will consider raising fares after state-run refiner Indian Oil Corp raised jet fuel prices by about 3 per cent from August 1.business Updated: Aug 01, 2008 10:19 IST
Budget carrier SpiceJet Ltd will consider raising fares after state-run refiner Indian Oil Corp raised jet fuel prices by about 3 per cent from August 1.
"We'll decide by Saturday," SpiceJet's Chief Financial Officer Partha Sarathi Basu said over telephone on Friday.
Indian Oil raised domestic jet fuel prices to 71,028.26 per kilolitre from July's 69,097.19 rupees per kilolitre for Delhi, and 73,673.56 rupees per kilolitre from 71,630.53 rupees per kilolitre for Mumbai.
SpiceJet increased fares in June by 300 rupees on the short sectors and by 550 rupees on the long sectors, afer jet fuel prices rose 13.4 per cent from May levels.
Domestic jet fuel prices have risen by 56 per cent since the start of the year on the back of high crude oil. Indian jet fuel, among the most expensive globally, makes up 45 per cent of an airline's operating costs.
SpiceJet had earlier said it was pruning services in loss-making routes and cutting down flights to trim losses due to high prices of fuel.